# What Explains The Sudden Drop In Oil Prices? | OilPrice.com

> Oil prices dropped to their lowest levels since late July after EIA data showed gasoline demand falling to 8.786 million bpd. Refinery runs were lower and maintenance season approached. A sudden US dollar strength also weighed on crude.

- Date: 2020-09-03 · published 2020-09-03T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/10229-what-explains-the-sudden-drop-in-oil-prices-oilprice-com
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Weak gasoline demand and reduced refinery runs cut crude consumption, while a stronger dollar makes dollar-priced commodities more expensive for foreign buyers.

## Read by commodity

- DXY: bullish ▲
- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2020-09-03 | 1 | -3.4% | -3.6 | On 2020-09-03, weak EIA gasoline demand, lower refinery runs and a sudden US dollar rise pushed crude to its lowest since late July (demand and currency). |
| BRENT | 2020-09-02 | 1 | -6.6% | -3.4 | Explains the sudden drop via weak EIA gasoline demand, lower refinery runs and US dollar strength, though it is dated a day after the move and likely describes the same drivers. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2018-07-30 | [OPEC Oil Production Hits 2018 High In July \| OilPrice.com](https://feedsoft.ai/events/63954-opec-oil-production-hits-2018-high-in-july-oilprice-com.md) | -0.3% | +1.0% |
| WTI | 2019-10-30 | [Oil prices extend fall after surprise inventory build(Update) \| The Star](https://feedsoft.ai/events/56743-oil-prices-extend-fall-after-surprise-inventory-build-update-the-star.md) | +3.1% | +5.2% |
| WTI | 2023-06-01 | [EIA expects lower crude oil prices for the second half of 2023 and for 2024](https://feedsoft.ai/events/36102-eia-expects-lower-crude-oil-prices-for-the-second-half-of-2023-and-for-2024.md) | +6.5% | +2.6% |
| WTI | 2023-02-01 | [Crude oil prices forecast to decline beginning in the second half of 2023](https://feedsoft.ai/events/37958-crude-oil-prices-forecast-to-decline-beginning-in-the-second-half-of-2023.md) | -2.2% | -1.7% |
| WTI | 2017-03-10 | [Oil Price Drop Triggers a ‘Herd Mentality’ of Selling](https://feedsoft.ai/events/8363-oil-price-drop-triggers-a-herd-mentality-of-selling.md) | -1.0% | +5.7% |
| BRENT | 2018-07-30 | [OPEC Oil Production Hits 2018 High In July \| OilPrice.com](https://feedsoft.ai/events/63954-opec-oil-production-hits-2018-high-in-july-oilprice-com.md) | -2.3% | +0.7% |
| BRENT | 2019-10-30 | [Oil prices extend fall after surprise inventory build(Update) \| The Star](https://feedsoft.ai/events/56743-oil-prices-extend-fall-after-surprise-inventory-build-update-the-star.md) | +2.5% | +5.3% |
| BRENT | 2023-06-01 | [EIA expects lower crude oil prices for the second half of 2023 and for 2024](https://feedsoft.ai/events/36102-eia-expects-lower-crude-oil-prices-for-the-second-half-of-2023-and-for-2024.md) | +6.3% | +2.1% |

## Sources

- oilprice.com: https://oilprice.com/Energy/Oil-Prices/What-Explains-The-Sudden-Drop-In-Oil-Prices.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.